Cambian Group rejects 210p per share takeover bid from CareTech Holdings - report
10 JUL 2018
Cambian Group’s [LON:CMBN] board has rejected a 210p per share takeover bid from rival social services company CareTech Holdings[LON:CTH], Sky News reported. CareTech made a bid approach to Cambian weeks ago, which is believed to have been rebuffed by Cambian’s board, according to the unsourced report.
It is understood that several institutional shareholders in Cambian were in favour of the takeover offer, the item said, adding that some of them are now calling for Cambian’s chairman Christopher Kemball to resign.
It was not know as of Monday, 9 July whether the two companies have held further talks or if the discussions are continuing, the item said.
Cambian and CareTech both refused to comment, according to the report.
CareTech’s executive chairman Farouq Sheikh said in June that the company was considering several “consolidation opportunities,” the item noted.
Cambian Group’s share price closed 2.2p up at 148.2p in London on Friday, 6 July, giving the company a market capitalisation of GBP 272m (EUR 306m).
Cambian has contracts with municipal authorities covering work including the provision of services to children with behavioural problems, while CareTech provides specialist services to children and adults who have learning disabilities, the report noted.
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